Amazon · Sherwood News
Amazon strikes agreement to buy Globalstar as it looks to take on SpaceX’s Starlink
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Globalstar is up 11% in premarket trading on Tuesday after Amazon announced it has agreed to acquire the satellite company for about $11.6 billion, as it moves to keep up with Elon Musk’s Starlink.
Key facts
- The acquisition would be Amazon’s second-biggest ever, according to S&P Capital IQ, behind its purchase of Whole Foods in 2017 for $13.7 billion
- Under the terms of the deal, GSAT stockholders can elect to receive either $90 in cash or 0.321 Amazon shares for every Globalstar share
- Globalstar is up 11% in premarket trading on Tuesday after Amazon announced it has agreed to acquire the satellite company for about $11.6 billion, as it moves to keep up with Elon Musk’s Starlink
- Amazon is aiming to increase the number of satellites it has in Earth’s low orbit to 3,200 by 2029
Summary
The deal would effectively bring Globalstar’s existing satellite operations, infrastructure, and assets, including MSS spectrum licenses with global authorizations, under Amazon “to deliver continuous connectivity for consumer, enterprise, and government customers around the world,” the internet giant said in a statement. The acquisition would be Amazon’s second-biggest ever, according to S&P Capital IQ, behind its purchase of Whole Foods in 2017 for $13.7 billion. Under the terms of the deal, GSAT stockholders can elect to receive either $90 in cash or 0.321 Amazon shares for every Globalstar share. Per the press release, Amazon’s Leo satellite network will “add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks.